Chronicles Of Depression 2.0: #432: UBS

In Zurich, UBS head office sits astride Paradeplatz – Parade Square to you and me.

But in recent months, the Swiss have renamed it Piratenplatz – or Pirate Square – to signify what they believe is the daylight robbery that has taken place over the last 12 months. Not of their biggest bank, but by it.

When the news began to trickle out that UBS was in big trouble because of its exposure to sub-prime mortgages, there was first surprise, then concern, and then finally, as the multi-billion pound extent of the losses became clear, fury.

Emphasis added by me.

And:

The Swiss know that UBS bosses earned among the highest salaries in Europe. Added to that were huge bonuses which they continued to award themselves even as the financial crisis unfolded.

Emphasis added by me.

Don’t you think such smugness deserves a rope around its neck? I do.

And:

“Touch their money and the Swiss get mad,” says Bernhard Weissberg, editor of the mass circulation Blick newspaper.

He should know, his desk is piled high with readers’ letters that are so angry you can almost see them smouldering.

“UBS bosses,” writes one reader, “give us our money back, or we’ll feed you to the crocodiles.”

Emphasis added by me.

Oh, but a rope is so much better. And it avoids abusing innocent animals.

And:

Management assurances that the bank was on the road to recovery were swiftly followed by a £40bn ($60bn) rescue package from the government, available to all Swiss banks. This caused more fury among taxpayers.

Emphasis added by me.

Isn’t that the pattern of failed business now? Lie lie lie Deny deny deny there’s any problem to the public while on the phone privately to the Government.

What I don’t like reading is this bit:

“The whole sub-prime thing is an American invention,” he says in a disgusted tone, “but a Swiss bank got involved.”

Emphasis added by me.

That is bad. They’ll want our necks in ropes. Or bodies thrown to crocodiles.